Managing Change Robert Race, Vice Chair Recyclatex Introduction - PowerPoint PPT Presentation

Managing Change Robert Race, Vice Chair Recyclatex

Introduction How we got here History Current Future

History

History

History Source – Lets Recycle.com (quoted mid price values)

Contributory factors in the rising value of recycled clothing  2004 – EU Expansion – 10 new countries joined  UK – established industry  British clothing considered to be ‘the best’  Government promotion of recycling

Current

Value £ £200.00 £250.00 £300.00 £350.00 £400.00 £450.00 £500.00 £550.00 Date Source: WRAP Materials Market Price Report (mid point values). 5-Oct-13 5-Nov-13 5-Dec-13 5-Jan-14 5-Feb-14 5-Mar-14 UK Charity Shop Grade Clothing 5-Apr-14 5-May-14 5-Jun-14 5-Jul-14 5-Aug-14 5-Sep-14 5-Oct-14 5-Nov-14 5-Dec-14 5-Jan-15 5-Feb-15 5-Mar-15 Current Market 5-Apr-15 5-May-15 5-Jun-15 5-Jul-15 5-Aug-15 5-Sep-15 5-Oct-15 5-Nov-15 5-Dec-15 5-Jan-16

Contributory factors  Political instability in key markets – Ukraine, Sub-Saharan Africa  Ebola 2014  East African Community (EAC) proposed ban February 2015  Difficulties in the Nigerian economy  Reduced Quality of Material  Charity shops extracting more value out of donated goods

Contributory factors – cont’d…

Contributory factors – cont’d…

Contributory factors – cont’d…

Contributory factors – cont’d…

Contributory factors – cont’d…

Contributory factors – cont’d…

Contributory factors – cont’d…

Contributory factors – cont’d…  Cheap Chinese goods  Strong Pound has made UK exports of used clothing more expensive  Demand from Eastern Europe  23% of Textile Recycling Association (TRA) members went out of business since the start of 2013.

Global Perspective: USA market “Well, basically, the price of textiles has gone from…the number was 16 and a half cents down to two cents a pound. So when you take in all the other costs including keeping it somewhere and moving it around, it’s just not profitable anymore for the people we were working with to do it ,” Ellen Graham, the assistant store manager at Experienced Goods, which raises money for a hospice. Eric Stuben from the Secondary Materials And Recycled Textiles Association stated, the bottom just fell out of the recycled materials markets — including what the industry calls mixed institutional rags.

Global Perspective: Canadian Market

Global Perspective: German Market

Consequences and the Future

Consequences  Values across all grades have declined since the start of 2014  Some charity shops now separating clothing and textiles  Recyclers are reducing the size of their collection areas  We are likely to see a continued decline in the number of Cash for Clothing operations  We have seen a decline in theft of clothing and bogus charity activity

Future  Recycling companies still under considerable strain  Difficult trading conditions in Africa  Nigerian economy  Introduction of living wage in UK  In/Out EU referendum vote  Value of rags

Managing Change  Use a Reliable collector  Charity shop grade specification  Make sure payments are correct and prompt  Managing change

Thank you Contact: Vanessa Knowles vanessa@recyclatex.co.uk